Budget 2026/27: relief measures and tax concessions as HK posts surplus with increased stamp duty and profits tax
發佈日期: 2026-02-25 19:49
TVB News
The government's operating account has recorded a surplus of more than 50 billion dollars this financial year, driven by higher-than-expected revenue from stamp duty and profits tax.
With that, this year's Budget introduces more relief measures than last year. They include doubling the cap on salaries tax concessions.
In last year's Budget, the government forecast a consolidated deficit of 67 billion dollars for the current financial year.
However, the outcome marked a sharp turnaround to log a 2.9 billion-dollar consolidated surplus.
Financial Secretary Paul Chan says improved economic and capital market performance over the past year boosted tax revenue.
Stamp duty income from stock transactions rose to nearly 100 billion dollars, about 47 percent higher than budgeted.
Profits tax revenue exceeded 200 billion dollars, about 8 percent above estimates.
Together, the two tax streams generated nearly 50 billion dollars more than expected.
But land sales revenue remained weak at 17.5 billion dollars and infrastructure spending, including projects in the Northern Metropolis, led to a deficit in the non-operating account.
Financial Secretary Paul Chan says the government financial position has improved markedly as the administration follows the principle of keeping expenditure within the limits of revenues in the economic cycle which ensures the sustainability of public finances.
Meanwhile, Chan plans to allocate 150 billion dollars from the Exchange Fund over two years to the Capital Works Reserve Fund to support development of the Northern Metropolis and other projects.
When asked about such use of the Exchange Fund, which primarily serves to regulate the exchange value of the Hong Kong dollar, the finance chief says it has consulted the Hong Kong Monetary Authority.
Financial Secretary PAUL CHAN: "The main purpose of the Exchange Fund is to defend Hong Kong's financial stability. Considering that we are just taking half of the income earned last year back to the government -- also for investment purposes, we do think it is considered a prudent move."
A consolidated surplus of 22.1 billion dollars is projected for next year.
With the consolidated account returning to surplus this year, more "sweeteners" could be seen.
The 100-percent tax concession for salaries tax and tax under personal assessment, will have its ceiling raised from 1,500 to 3,000 dollars. About 2.12 million taxpayers are expected to benefit.
The profits tax concession ceiling will be increased to 3,000 dollars, benefiting about 170,000 businesses.
In the first two quarters of the next financial year, rates will be waived -- subject to a ceiling of 500 dollars for each rateable property.
Recipients of Comprehensive Social Security Assistance or CSSA, Old Age Allowance and similar subsidies will receive an extra allowance equal to one month of the standard rate.
Some citizens welcomed the move, saying the extra money would allow them to enjoy small treats such as dining out, thereby supporting the local economy.
There is more good news for taxpayers.
Starting the next financial year, the basic allowance and single parent allowance will increase from 132,000 to 145,000 dollars.
The married person's allowance will rise to 290,000 dollars.
More than two million taxpayers will benefit.
Child allowances and additional child allowances will increase to 140,000 dollars, benefiting 360,000 taxpayers.
Allowances for supporting a dependent parent or grandparent will rise by 10 percent.
For those with dependent parents aged between 55 and under 60, the allowance will increase to 27,500 dollars.
For those with dependents aged 60 or above, it will rise to 55,000 dollars.
For parents residing in eligible residential care homes, the maximum deduction for elderly residential care expenses will increase to 110,000 dollars.
